VW policy welcomes labor activity at Tennessee plant

Erik Schelzig, Associated Press

November 12, 2014

NASHVILLE, Tenn. - By giving labor groups more access to its lone U.S. plant in Tennessee, Volks-wagen signaled Wednesday that it won't follow the lead of other foreign-owned automakers in the South in seeking to tamp down union activity.

The company's new policy has given hope to both supporters and opponents of efforts by the United Auto Workers to unionize its first foreign-owned plant in the region.

The outcome of the union drive at the Chattanooga plant is being closely monitored by other German and Asian automakers in the region, and by Republican officials who dread the prospect of a UAW breaking its losing streak among what the union refers to as the "transplants."

The company's new policy gives labor groups that sign up at least 15 percent of the plant's workers access to plant facilities and to regular meetings with management. It comes on the heels of news that Volkswagen and the UAW have reached an agreement on future recognition of the union at the plant.

Volkswagen said its policy is aimed at developing a "constructive dialogue" between workers and management.

VW management has been under heavy pressure from powerful worker representatives who control half of the automaker's board in Germany because the U.S. plant is alone among the company's worldwide plants without labor representation.

The same law requiring labor representation on the VW board also applies to other German auto­makers with factories in the South, like BMW and Daimler. The UAW has so far failed to make inroads at those companies' plants in Alabama and South Carolina, and Republican officials there have been keen to keep it that way.

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